DEFENSE LOGISTICS AGENCY HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

 FORT BELVOIR, VIRGINIA 22060-6221

June 11, 2020

MEMORANDUM FOR SUPPLY DISCREPANCY REPORT (SDR) PROCESS REVIEW 

COMMITTEE (PRC)

SUBJECT: Approved Defense Logistics Management Standards (DLMS) Change (ADC) 1374, 

Allowable Updates to Supply Discrepancy Report (SDR) Corrections (SDR)

The attached change to DLM 4000.25, Defense Logistics Management Standards is approved 

for implementation. 

Addressees may direct questions to the Enterprise Business Standards Office (EBSO) SDR 

Administrator, Mr. Ben Breen, at email: EBSO.SDR@dla.mil. All others must contact their 

Component designated Supply PRC representative or SDR PRC representative available at: 

https://www.dla.mil/HQ/InformationOperations/DLMS/allpoc/.

THOMAS A. DELANEY 

Director, Enterprise Business Standards Office

DLA Information Operations

Attachment

As stated

cc: 

ODASD(Logistics)
Attachment, ADC 1374

Page 1

ADC 1374 

Allowable Updates to SDR Corrections

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: Ben Breen, DoD

Discrepancy/Deficiency Administrator; email: EBSO.SDR@DLA.MIL.

2. FUNCTIONAL AREA LOGISTICS AND TRANSACTION CHANGES: 

a. Primary/Secondary Functional Area: SDR

b. Primary/Secondary Functional Process: SDR

3. REFERENCES:

a. DLMS 4000.25, Volume 2, Chapter 17, Supply Discrepancy Reporting and Appendix 

7.28, Supply Discrepancy Report Relevant Data Elements

b. ADC 452A, Additional Criteria for DoD WebSDR Automated Supply Discrepancy 

Report (SDR) Rejection Capability, October 9, 2012

c. ADC 1044, Enhanced Interim Supply Discrepancy Report (SDR) Reply Capability, 

Status Update, and Completion Notification (Supply/SDR), January 22, 2013

d. ADC 1044A, Clarification of Business Rules Associated with Supply Discrepancy 

Report (SDR) Replies for Status Update and Completion Notification, September 9, 2014

e. ADC 1127, Enhanced SDR Guidance for Foreign Military Sales (FMS), SDR Time 

Standards for Controlled Inventory Items, SDR Forwarding after Logistics Reassignment (LR), 

Packaging SDRs, and Administrative Updates, October 30, 2014

4. REQUESTED CHANGE(S):

a. Brief Overview of Change: This change documents revised processing rules for the 

Supply Discrepancy Reports (SDR) correction (CO) submissions across the DoD SDR

Exchange. This change:

(1) Provides new systemic and business rules applicable to the data fields used in 

the SDR correction function.

(2) Establishes rules limiting the allowable systemic and data field updates made 

to the original SDR submission using the SDR CO function, which is applicable to all originating 

and submitting SDR systems. 

(3) Limits the data fields that will be accessible when using the SDR CO

function.
Attachment, ADC 1374

Page 2

(4) Establishes a new rule requiring that a correction be sent, when the 

distribution center provides a status update (SU) with Reply Code 320 in response to a request 

from the action activity to reclassify materiel with Reply Code 608. 

(5) Establishes a new SDR reply code used for rejecting submissions that contain 

invalid data updates using the SDR CO function.

b. Background:

(1) Currently, DLMS 4000.25, Volume 2, Chapter 17 has limited business rules 

in place applicable to the SDR CO functionality (Reference 3.a.).

(a) When the originator needs to modify discrepancy information, or the 

requested action contained in a previously submitted SDR, a new transmission of the SDR may 

be used. The original submitter may indicate that the SDR is a modification or correction and 

forward to all parties who received the original submission. The submitter will cite the 

nonconformance report number of the original report. SDR applications will include the 

WebSDR-assigned control number when known. A brief narrative description of the revision 

must be included. Significant errors, such as an incorrect requisition document number, 

document number suffix, or owner/manager identification on storage activity-submitted SDRs, 

must be corrected by canceling the original SDR and submitting a new report.

(b) In addition, SDR CO are used where electronic attachment capability 

is not available. Users should supplement their original SDR submission via the WebSDR CO

process and attachment functionality to upload information not readily available to the action 

activity providing evidence of the discrepancy. 

(2) When the action activity requests materiel be changed from one supply 

condition code (SCC) to another, with Reply Code 608 (Reclassify materiel as instructed; final 

disposition instructions will be provided upon confirmation of reclassification), there is no SDR 

CO transmitted to update the SDR record. This change updates this process. 

(3) Today, when certain changes are made using the SDR CO, it results in 

systemic transaction errors or SDR rejections that cause SDR processing delays.

(4) Cancellation is a process stoppage requested by the user submitting the SDR.

This is Transaction Set Purpose Code 01, and only the submitter can generate the cancellation for 

the SDR. A Completion Notice (CN) is generated by the submitter of the SDR when the 

submitter is satisfied with the outcome after disposition was executed. This is Transaction Set 

Purpose Code CN and only the originator can generate it. 

(5) For clarification, if the originator of the SDR generates a CN, then WebSDR 

considers the SDR closed. The system will not process any further actions against it. If the 

submitter had a question or needed clarification, then the submitter should have generated an

SDR Reconsideration 15 and not generated the CN. If the submitter generates a CN, and for 

some reason needs clarification, then they would need to create a new SDR. Otherwise, this 

would be too much programming to try to account for reopening an SDR after generating the 

CN.
Attachment, ADC 1374

Page 3

(6) When the term “close” is used, this refers to a submitting activity generating a 

CN. A submitting activity cannot send a CO, if it previously generated a CN. In addition, if the 

action activity sends disposition instructions, and the submitting activity of the SDR does not 

agree with the disposition, then it should send an SDR Reconsideration 15 and not a CO. 

c. Requested Change in Detail: Significant updates after staffing are highlighted in 

green.

(1) Only the following data fields may be updated by a SDR CO:

(a) narrative comments, to include the International Logistics Control 

Office (ILCO) comments section, 

(b) the repackaging corrective action cost, 

(c) quantity, 

(d) an uploaded attachment, and 

(e) the supply condition code. An SDR CO must be sent when the 

distribution center receives reply code 608 to reclassify materiel. The CO may be sent either 

before, or after the distribution center transmits a Status Update (SU) with reply code 320:

Reclassification of materiel complete. (Use only with status update.)

(f) the action code (which may be changed only by a Disposition Service 

Type D, with any subcategory, SDR). 

(2) This change removes the logic that would allow a CO to reopen an SDR 

using Discrepancy Code Z6: Report reopened following inappropriate cancellation/completion 

(must use in combination with other discrepancy codes; must appear as first discrepancy code in 

transactions ) once the submitter has generated a CN on the SDR (Enclosure 1).

(3) This change establishes a systemic, automated DAAS edit/rejection in 

WebSDR. WebSDR will use this rejection when a user attempts to change a field not authorized 

to be changed, and DAAS will send the new Reply Code 951 when this happens (Reference 

3.a.). 

951 Transaction rejected. Unauthorized change of data value using a Correction

d. Revisions to DLM 4000.25 Manuals:

(1) Update DLMS Volume 2, Chapter 17, Supply Discrepancy Reporting as 

shown in Enclosure 1.

(2) Update DLMS Volume 2, Appendix 7.28, Supply Discrepancy Report 

Relevant Data Elements as shown in Enclosure 2.

e. Approved Transaction Flow: No change to the existing dataflow
Attachment, ADC 1374

Page 4

f. Alternatives: None available

5. REASON FOR CHANGE: Minimize programming/translation errors across the DoD SDR 

exchange by preventing the transmission of corrections containing illogical data. 

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: Reduces SDR processing errors system wide.

b. Disadvantages: None

7. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: DAAS will implement this 

change in WebSDR no later than December 31st 2021. Components did not provide an estimated 

timeline for implementation. 

8. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: While there is no dollar figure associated, there 

will be a reduction in man-hours currently used to correct processing errors when unauthorized

data is passed in the correction.

9. IMPACT: 

a. New DLMS Data Elements: None

b. Changes to DLMS Data Elements: None

c. Defense Automatic Addressing System (DAAS):

(1) Establish edit(s) for invalid data used in the SDR correction.

(2) Update WebSDR Application Reply Code drop down menu with new code.

(3) Include new Reply Code 951 in WebSDR ad hoc query selection screen list. 

d. Non-DLM 4000.25 Series Publications: Components to update their Service-level 

policy and procedures accordingly.

10. PROPOSED DLMS CHANGE (PDC) 1374 RESPONSE/COMMENT RESOLUTION:

Component Response/Comment Disposition

1. DLA Concur with comment.

DLA is currently going through a transition of using the 

Distribution Standard System (DSS) and moving to the 

SAP Platform with Warehouse Management System 

(WMS). Changes to our existing DSS system will not take 

place. DLA will implement changes in this PDC upon 

conversion to the new WMS platform.

As noted 
Attachment, ADC 1374

Page 5

2. Navy Concur with comment.

While communicating with the PDREP Team about PDC 

1374 and the comments we added to the 1240 when we 

concurred with the PDC, Ken and Brandon brought up a 

very important subject. We (you, PDREP and I) agreed 

on the fact that a CO (Correction) cannot be sent after a 

CN (Completion Notice) is processed. However, ADC 

1127 states something could contradict this:

1. Properly format/accept resubmission of SDRs as a 

correction (CO) using Z6 Discrepancy Code after 

customer cancellation/completion. Rules for this: 1. If Z6 

comes in on "00", reject with reply 915 with narrative: 

discrepancy code Z6 can only be used with a correction 

(CO) 2. If Z6 comes in on CO without another

discrepancy code reject with reply code 915 with 

narrative: discrepancy code Z6 must be used in 

conjunction with another discrepancy code. 

2. Ensure transactions containing Discrepancy Z6 map 

this value to first discrepancy code in outgoing 

transaction. If discrepancy code Z6 comes in on CO with 

another discrepancy code reset SDR Status to Open -

awaiting disposition –

3. WebSDR will reject new SDR submissions that match a 

previously cancelled SDR as a duplicate. The duplicate 

matching criteria are: document number/suffix, action 

activity, transportation control number, and discrepancy 

code(s) (plus the Automated Discrepancy Reporting 

System (ADRS) control number for SDR prepared by 

DSS). Reject with Reply Code 907. The SDR will 

include remarks text (or tailored error message for on-line 

WebSDR users) as follows: “A separate new SDR may 

not be processed after the original SDR has been 

cancelled. If the original SDR was cancelled by mistake, 

the record may be reopened by submitting an SDR 

correction citing Discrepancy Code Z6 as the first 

discrepancy code and remarks text to clarify the situation.”

4.Corrections should not be submitted after disposition is 

provided. If disposition is provided then a reconsideration 

should be submitted. Corrections should not be submitted 

after a SDR is closed. 

I think if a correction is submitted after a SDR is closed, it 

could reopen the SDR in DSS but the SDR would remain 

closed in PDREP. This could cause discrepancy in the 

data (please correct me if I am wrong). Our SDR 

community would not know that they needed to work 

As noted 

1. For clarification, We are 

removing the logic that 

would allow for a CO to 

reopen an SDR with a Z6 

discrepancy code once the 

submitter has generated a 

completion notice (CN) on 

the SDR. (This was in the 

enclosure as double strike 

through).

If the submitter of the SDR 

generates a CN, then the 

SDR is done. No more 

transactions allowed on it.

If the submitter had a 

question or needed 

clarification, then they 

should have done a 

reconsideration (15) and not 

generated the CN.

If they generate a CN, and 

for some reason need 

clarification or whatever, 

then they would need to 

create a new SDR.

Too much programming to 

try and account for 

reopening an SDR after the 

CN is generated. 

4. When we say “close” this 

refers to a completion notice 

(CN) being generated by the 

submitting activity.

I agree, if a CN is sent, a 

CO cannot be sent.

I also agree that if you send 

disposition, and depot 

doesn’t agree with the 

disposition then a 

reconsideration (15) should 

be sent and NOT a CO. 
Attachment, ADC 1374

Page 6

SDRs in this situation because our system would show the 

SDR as closed.

In order to make clear what we are trying to improve with 

PDC 1374 (once it becomes an ADC) we would like to 

know your definition of cancellation and completion. For 

us:

• Cancellation= Process stoppage requested by user

• Completion= Customer satisfied with the outcome 

after disposition was executed (different than 

provided/submitted)

If your definition of the terms is similar to ours then we 

think an addendum would be needed to update ADC 1127, 

removing the word completion from the ADC. Otherwise, 

we would need further clarification to ensure 

understanding and proper implementation of PDC 1374 

(once it becomes an ADC). 

Cancellation= Process 

stoppage requested by user= 

This is Transaction Set 

Purpose Code (01) and only 

the submitter can generate 

the cancellation for the 

SDR.

Completion= Customer 

satisfied with the outcome 

after disposition was 

executed (different than 

provided/submitted)= This 

is Transaction Set Purpose 

Code (CN) and only the 

submitter can generate. 

This is after they have taken 

the disposition on the SDR 

and effectively no further 

action is needed. 

3. Air Force Concur with comment.

Please update the last sentence of paragraph C17.3.15.1 to 

read: All other errors will be corrected by submitting a 

new SDR with the correct information. 

As noted

The paragraph already 

identifies allowable 

corrections, and any 

corrections beyond those 

would require a new SDR.

4. US Army Concur without comment. As noted

5. USMC Concur without comment As noted

6. DAAS Concur without comment As noted

7. USTRANSCOM Abstains. As noted

8. GSA N/A N/A

9. ODASD Concur with comment.

One of the allowable updates included in the PDC is the 

repackaging corrective action cost. Recommend inclusion 

of this field as an allowable update be examined to ensure 

it does not create potential conflicts, for example with the 

dollar thresholds for Service-owned and Defense Logistics 

Agency-owned materiel for packaging remediation.

As noted, this ADC doesn’t 

create a conflict with dollar 

thresholds. 
Enclosure 1, ADC 1374

Page 1

Enclosure 1

DLMS Volume 2, Chapter 17, Supply Discrepancy Reporting

Update Chapter 17 as shown below.

Preceding text not shown

C17.3.12.1.2.1.5. Item Manager Forwarding to Defense 

Contract Management Agency (DCMA). SDRs may only be forwarded to DCMA for 

action when the contract indicates that DCMA is responsible for inspection or 

acceptance. SDRs lacking this evidence of the discrepancy will make it difficult for 

DCMA to support a claim of vendor noncompliance. Therefore, if the SDR submitter did 

not provide evidential matter substantiating the discrepancy at time of creation, the item 

manager will reply to the SDR submitter and request additional information using Reply 

Code 104. The item manager will annotate in SDR remarks requesting photographs or 

documentation supporting the discrepancy reported. DLA Distribution Centers will reply 

to the request for evidence of the discrepancy using a Status Update with Reply Code 

321. Customers (or others lacking status update functionality) must provide an SDR 

Correction in response to the request and upload the requested evidential matter as 

attachments. SDR submitters may upload attachments via WebSDR if their internal 

SDR system does not provide attachment functionality. DCMA is required to reply to 

SDRs forward for action (Reply Code 501) within 25 days. If DCMA is unable to 

conclude their investigation within 25 days, DCMA will generate an interim response 

(e.g., citing Reply Code 503 or 515) indicating the expected timeframe for closure.

Intervening text not shown

C17.3.15. Correction and Modification/Update of Original Report. When the 

originator needs to modify discrepancy information or requested action concerning a 

previously submitted SDR, a new transmission of the SDR may be used. Indicate that 

the SDR is a modification or correction and forward to all parties who received the 

original submission. Cite the nonconformance report number of the original report. 

SDR applications will include the WebSDR-assigned control number when known. SDR 

applications will include revised content and the original unchanged discrepancy 

information from the original report using the DLMS 842A/W. POC information 

applicable to the revised SDR is required. A brief narrative description of the revision 

must be included. Significant errors, such as an incorrect requisition document number 

document number suffix or owner/manager identification on storage activity-submitted 

SDRs, must be corrected by canceling the original SDR and submitting a new report.

C17.3.15.1. Corrections to an original SDR are limited to the narrative 

comments, to include the ILCO comments section, repackaging corrective action 

cost updates, discrepant quantity, attachment uploaded as evidential matter, and 

action code for Disposition Service Type D with any subcategory. A brief 

narrative of the correction must be included in the remarks field. Reject 
Enclosure 1, ADC 1374

Page 2

unauthorized changes using Reply Code 951. All other significant data fields will 

be corrected by submitting a new SDR with the correct information and 

cancelling the original SDR.

C17.3.15.2. A Correction (CO) must be generated by the distribution 

center upon receiving reply code 608 to reclassify materiel. The correction may 

be sent before or after the distribution center transmits a Status Update (SU) with 

Reply Code 320 (Reclassification of materiel complete (Use only with Status 

Update.)) to reflect the updated supply condition code of the materiel on the SDR. 

Intervening text not shown

C17.3.16. Cancellation of an Original Report. When an SDR originator discovers 

a previously reported SDR is not valid or appropriate for any reason and should be 

withdrawn, a new SDR cancellation must be prepared to cancel the original. Forward to 

all parties that received the original submission. Cite the original report number . SDR 

applications will include the WebSDR-assigned control number when known. POC 

information applicable to the cancelled SDR is required. A brief narrative description of 

the reason for cancellation must be included.

C17.3.16.2. If an SDR is inadvertently cancelled, it may be reopened by 

submission of a correction citing Discrepancy Code Z6 as the first discrepancy code in 

the transaction. The cancellation must contain the WebSDR control number originally 

assigned to the SDR. This will allow the action activity to reopen the original record and 

retain the relationship between that SDR and the newly submitted content. Do not 

submit a new SDR (Transaction Set Purpose Code 00) in this situation as this SDR will 

be considered a duplicate SDR and will be rejected.
Enclosure 2, ADC 1374

Page 1

Enclosure 2

DLMS Volume 2 Appendix 7.28, Supply Discrepancy Report Relevant Data Elements

Update Appendix 7.28 as shown below.

The 900-series codes are intended for system/application use in processing 

transactions. When SDRs are processed manually, these codes may be user 

assigned as appropriate

Intervening codes not shown

949 Transaction rejected. Reply Code 504 can only be used for SDR Document 

Type Code 7 or R, and cannot be used with any other reply code. 

951 Transaction rejected. Unauthorized change of data value using a 

Correction. Submit a new SDR.
Enclosure 3, ADC 1374

Page 1

Enclosure 3

DLMS IC 842 AW, Standard Supply Discrepancy Report (SDR), Follow-up, Correction, 

Cancellation, & Reconsideration Request

Update the DLMS 842A/W as shown below.

Item Location Revision to 4030 842A/W Standard Supply Discrepancy Report 

(SDR), Follow-up, Correction, Cancellation, & Reconsideration 

Request

Reason

1. DLMS 

Introductory 

Notes

Add ADC 1374 to DLMS introductory notes:

- ADC 1374, Allowable Updates to SDR Corrections

To identify DLMS 

changes included in 

IC 

2. 2/BNR01/0200 Revise DLMS Notes for Qualifier CO:

CO Corrected

DLMS Notes:

1. Document Number and Suffix may not be modified from the 

original submission. If these were identified in error the SDR must be 

cancelled and resubmitted.

2. Only allowable changes include narrative comments, to include 

the International Logistics Control Office (ILCO) comments section, 

update the repackaging corrective action cost, quantity, supply 

condition code, upload an attachment as evidential matter, and 

action code for Disposition Service Type D with any subcategory. 

All other changes must be corrected in a new SDR submission. 

Invalid data changes will be rejected. Refer to ADC 1374.

Revises note with 

referenced ADC for 

data changed using 

the SDR correction.